Filenews 22 December 2023 - by Chrysanthos Manolis
Phileleftheros reports that an investigation is underway by the Audit Office, following an official complaint by EAC, regarding alleged violations of legislation by P.E.C. POWERENERGY CYPRUS, which is constructing its own 230 megawatt power station in Vasilikos, very close to EAC's facilities.
The Audit Office has sent an extensive letter to the Ministries of Energy and Defence, CERA and the Department of Town Planning, the Department of Cadastre, the Department of Environment and other departments, requesting their positions.
The letter from the Audit Office states that EAC claims to have "established that P.E.C. POWERENERGY CYPRUS LTD has carried out actions and/or constructions in the vicinity of the Vasilikos power station, which pose very serious risks to its operation, as well as to the general ecosystem of the area".
- The Audit Office points out to the competent services, from which it requested their positions, that "we note that at this stage we have not investigated them in order to confirm".
- From the private company, they stressed to "F" that all works are carried out legally, after obtaining all permits and attributed EAC's claims to an attempt to delay the works for the private power station and at the same time to delay competition (more in an adjacent column).
What EAC supports
The main points of EAC's claims, as recorded in the letter of the Audit Office:
(a) PEC has constructed a seawater pumping station on the beach, on the southwestern border with Vasilikos station, in block no. 558, which is leased exclusively to EAC, on the basis of a long-term lease for the purposes of Vasilikos. The above mentioned construction, according to EAC, constitutes an illegal intervention on the plot. EAC requests that the pumping station be removed, otherwise it will proceed with legal action.
(b) the required planning permission does not appear to have been obtained for the construction of the above-mentioned pumping station, for the installation of a seawater intake pipeline, as well as for the cooling/brine hot water extraction pipeline, (c) planning permission has not been obtained for the installation of an onshore seawater supply pipeline, which passes through the land of the Naval Base and ends at the pumping station.
(d) it appears that the company is violating the agreement it entered into with the Department of Town Planning to apply for the issuance of a planning permit for the installation of pipelines and a pumping station.
Risk of harm says EAC
EAC informed the Audit Office of its serious concerns about the risk of affecting the operating efficiency of all production units of the Vasilikos power station, due to a possible increase in the temperature of the seawater cooling water pumped by EAC, since the pipe placed in the sea by PEC to deposit the used cooling/desalination water back into the sea, is within walking distance of the EAC cooling water pumping point.
He adds that it uses seawater for cooling the station's engines and any increase in the temperature of the catchment water will cause serious financial losses to EAC, and consequently to the Cypriot consumer.
- On behalf of PEC, we were told that EAC's claims regarding the increase in sea water temperature from the water returned from the company's station are unsubstantiated and constitute alarmism, since, as they stressed, a very small amount of water will return to the sea, since the company will use a different -more modern- cooling process of its units.
We have all the licenses comments the company
Regarding the case, we contacted a PEC executive, who was aware of EAC's complaint and the involvement of the Audit Office. He rejected EAC's claims, argued that work on the new power station – which is at an advanced stage – is being carried out after obtaining all the necessary permits and added that there is also an agreement with the adjacent naval base for the pumping station.
He attributed EAC's allegations to an attempt to obstruct PEC's constructions, which, upon completion and the introduction of natural gas, will compete with the semi-governmental organization, offering, as he said, cheaper electricity.
The involvement of the Minister of Foreign Affairs Defense and what Odysseus wants to know
The letter of the Audit Office states that it was informed by EAC that "on 6.10.2023 a meeting on the above issue was held at the Ministry of Defence, which was attended by representatives of the Ministry of Defence, the Department of Environment, the district office of the Department of Lands, the Cyprus Ports Authority, the Energy Service, the Department of Fisheries, the EAC, as well as officers of the Naval Command and the Naval Base".
According to EAC, concerns were expressed at the meeting on behalf of the Department of Environment for the ongoing projects, both within the sea area and on the beach, due to a number of omissions and unauthorized works, as well as non-implementation of the terms of the Environmental Report. According to EAC, the Head of Technical Services of the Ministry of Defence stated that the Ministry of Defence had granted facilities and permission for the construction of a pumping station in block no.558, on which, however, EAC claims, it has no competence since its legal owner is itself, and for the installation of an onshore pipeline terminating/importing seawater and that they have taken or will take compensatory measures for these facilities.
They are invited to respond
The Audit Office invites the services concerned to comment as soon as possible on:
- the Ministry of Defence and the Hellenic Navy Command to inform us whether it has indeed granted any facilities and/or permission for the construction of a pumping station and the installation of an onshore seawater termination/intake pipeline and, if so, on what legal basis/right it has done so. Also, whether it is true that they have taken or will take compensatory measures for these facilities and what they are.
- the Department of Town Planning to inform us if any terms of the Town Planning Permit granted to the company for the construction of an electricity plant and the relevant agreement it has concluded with the company are violated, as well as for the actions it has taken or will take in case of their violation.
- The Department of Environment to inform us what the terms of the Environmental Opinion say, which of them may not be applied or even violated, as well as what it will do in case the company does not comply with them.
- the Land Registry Department to inform us if indeed the site where the illegal works are carried out, according to EAC, is leased to EAC and if there is any agreement with the company for the concession of another space in Vasilikos.
- the Energy Service to inform us whether it has received any information from the company about these works and what actions it has taken or intends to take.
- the Port Authority to inform us whether the company should contact it to obtain permission to carry out works in the maritime space, and if this has not been done, what it intends to do about it.
- CERA to inform us about the licenses it has granted to the said company, the terms included in these licenses, any non-compliance of the company with these terms as well as its relevant actions in case the company has indeed proceeded to any violations.